NOW: Pensions launches new drive to make sure savers get the best annuity deal on retirement

One of the two low-cost workplace pension providers has teamed up with a specialist annuity provider to ensure all savers get the best possible income at retirement.

This positive move follows repeated warnings in these pages that the traditional pensions industry does too little to help with the crucial matter of annuity choice.

The company, called NOW: Pensions, is an offshoot of a major Danish provider and offers low-cost workplace pensions in Britain following new rules forcing companies to automatically enrol staff into retirement schemes.

Retirement income: Members will be asked about their health and lifestyle to ensure they obtain extra income payable to those with limited life expectancy

The other provider is Nest, the Government-backed plan.
Annuity Direct has been selected by NOW: Pensions to help customers identify the best deal on retirement – helping some increase their pension by as much as 40 per cent.

Members will be asked about their health and lifestyle to ensure they obtain extra income payable to those with limited life expectancy.
It will help them understand the annuity options available too, including spouse benefits or inflation-linked policies.

As The Mail on Sunday revealed last week, this could prove crucial, as many policyholders do not understand the implications of buying the wrong policy – such as those covering only one person in a couple.

Morten Nilsson, chief executive of NOW: Pensions, says: ‘Buying an annuity is one of the most important financial decisions you will ever make. All providers have a responsibility to offer members access to the best options from the whole marketplace to make sure their pension pot stretches as far as possible.’

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NOW: Pensions and Annuity Direct team up to help customers get the best deal on retirement